Crypto Is Legit Competition for Fiat Money, Says ShapeShift CEO
Over the years, the cryptoverse has drawn in increased interest from institutional investors and governments around the world. Has a corner finally been turned for crypto? ShapeShift CEO and Bitcoin proponent Erik Voorhees seems to think so per his latest press interview.
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Cryptocurrency Catching Up to Fiat Money?
In an interview with Bloomberg’s Caroline Hyde, ShapeShift CEO Erik Voorhees shed light on the present crypto landscape, discussing regulations, ICOs, and his thoughts about where crypto goes from here.
Perhaps most interesting among Voorhees’ remarks were his thoughts on the materializing, seemingly epochal competition between fiat and cryptocurrencies. The CEO and OG bitcoiner said fat money has long faced no serious competition in the existing financial system, however cryptocurrencies are now bringing a tangible challenge to bear.
“It’s taking over the world in some ways,” Voorhees said of blockchain tech and crypto. “It goes in fits and starts.”
Voorhees emphasized that cryptocurrencies are not magic bullets that will bring utopia, but instead they usher revolutionary competition into the world of money:
“Crypto is not a panacea. It does not bring the utopia. But what I think it does do is finally bring competition into the realm of money, and it allows people to actually innovate in financial systems in a way that’s never been able to be done before […] And even if someone doesn’t buy into whether bitcoin will take over fiat currencies, like dollars, most people should at least be interested in the fact that competition is now happening. That’s generally seen as a good thing.”
On the topic of regulating the fledgling cryptoeconomy, Voorhees was characteristically pessimistic:
“I generally think that most regulation is superfluous at best, and a lot of it is quite harmful. Especially in the realm of finance, I think money itself is really in need of being let loose and freed from government control. In a market-based economy, having the primary good — money, being centrally planned, I think is problematic.”
In the Bloomberg interview, Voorhees stated that “a lot of Initial Coin Offerings (ICOs) are garbage, while some are well-intentioned but will fail, and some will transform the world.” The ratio of fraudulent ICOs may overweigh the genuine projects, he noted, but he does not see a need for overarching regulations in the United States’ crypto space and beyond. Instead, he proposes regulators to focus on preventing scams and to avoid flouting the idea of a free economy.
Voorhees’ ShapeShift, an account-less digital asset exchange, has been pivotal in encouraging such a free economy with no centralized authority. The exchange does not store users’ digital currencies or require accounts but works more like a vending machine, wherein a user enters a crypto to receive another crypto in an equivalent amount in return — a transparent, decentralized, and secure way to trade digital assets.
However, as the Securities and Exchange Commission (SEC) sets its eyes upon tokenization, we’ll all have to wait and see how America’s slice of the cryptoverse is affected.
Will cryptocurrencies replace fiat money in the next decade? No chance? Share your views in the comments section.
Images via Bloomberg, CEX.io